Mughal Steel swings to Rs926m profit in Q1 FY26

October 29, 2025 (MLN): Mughal Iron & Steel Industries Limited (PSX: MUHGAL) has revealed its financial results for the quarter ended September 30, 2025, demonstrating a remarkable turnaround from the previous year's loss to a substantial profit.

The company posted a Profit after Taxation of Rs926m, a dramatic reversal from a loss of Rs24m recorded in the same period last year.

This exceptional performance was reflected in Earnings per Share (EPS), which surged to Rs2.51 compared to a loss of Rs0.07 per share in Q3 2024.

Despite an 8% decline in Gross Sales to Rs22.62bn from Rs24.65bn last year, the company achieved significantly improved profitability through better cost management and operational efficiency.

Net Sales decreased 7% to Rs20.09bn, accompanied by a favorable 18% reduction in Sales Tax. The company's strategic cost optimization initiatives resulted in a substantial 15% decline in Cost of Sales to Rs16.64bn, which proved instrumental in driving profitability.

Gross Profit surged an impressive 74% to Rs3.45bn, marking a significant improvement in the company's margin profile and operational performance.

However, certain challenges emerged during the quarter: Sales and Marketing Expenses increased dramatically by 179% to Rs100m, while Administrative Expenses rose 26% to Rs275m.

Other Charges escalated significantly to Rs151m from just Rs741k last year, and Allowance for Expected Credit Losses (ECL) jumped sharply to Rs73m.

On a positive note, Finance Cost declined 50% to Rs951m, providing substantial relief to the bottom line. Other Income decreased 19% to Rs43m during the period.

Profit before Taxation reached Rs1.94bn, a significant improvement from a loss of Rs252m in the previous year. The company recorded a taxation charge of Rs1.02bn compared to a tax credit of Rs228m last year. Additionally, Levies decreased 95% to Rs7m, further supporting profitability.

The strong turnaround in Mughal Iron & Steel Industries Limited's financial performance demonstrates the company's resilience and effective cost management strategies in a challenging operating environment.

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